WASHINGTON, June 9, 2017 — The World Bank’s Board of Executive Directors today approved US$27.2 million in financing to the Republic of Moldova for the Climate Adaptation Project, which will help Moldovans to protect their farms, forests and pastures from climate change in specific zones, and strengthen national disaster management systems.
A World Bank study of the economics of climate change in Moldova found that the biggest challenges and investment opportunities are in agriculture. The Climate Adaptation Project will help reduce the vulnerability of rural households, which represent a disproportionately high share of the poor, to the impacts of climate change, and enhance the capacity of government institutions, key stakeholders, communities and the public to manage climate change risks.
The Project will support the Moldovan Government Action Plan for the Implementation of the Climate Change Adaptation Strategy to 2020.
“Frequent natural hazards, similar to the one that occurred on 21 April, and their substantial impact on Moldova’s economy and people call for a commitment to enhance the country’s climate adaptation capacity”, said Alex Kremer, World Bank Country Manager for Moldova. “The country’s size and demographic peculiarities make climate adaptation and disaster risk management indispensable items of Moldova’s sustainable development agenda.”
The objectives of the Climate Adaptation Project are to:
- Enhance adoption of climate-smart practices in selected rural landscapes by supporting: 1) the scale-up of farmers’ climate-smart technologies and agricultural practices, as well as the provision of related advisory services; and 2) expanded up-take of irrigation services.
- Enhance the climate resilience of Moldova’s forest and pasture lands through restoration of degraded lands at the community and village level, and improved climate-smart management of forest reproductive material.
- Strengthen Moldova’s climate and disaster risk management systems and, in the event of an eligible crisis or emergency, provide immediate financing to respond quickly to said crisis or emergency.
Since Moldova joined the World Bank Group in 1992, over US$ 1 billion has been allocated to approximately 60 projects in the country. Currently, the World Bank portfolio includes 8 active projects with a total commitment of US$ 333.3 million. Areas of support include regulatory reform and business development, education, social assistance, energy, healthcare, agriculture, local roads, environment, and more.
The International Finance Corporation’s committed portfolio in Moldova is US$ 53.8 million (US$ 50.9 million outstanding). Its committed portfolio consists of 95 percent loans and 5 percent equity. The Multilateral Investment Guarantee Agency has provided guarantees totaling US$ 95 million. Both institutions are members of the World Bank Group.